iPhone sales will continue to grow despite market pessimism says Evercore ISI By

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Despite concerns about the iPhone’s growth potential, Evercore ISI analysts remain bullish on Apple’s flagship product, citing three key drivers for mid-single-digit growth in the future.

According to Evercore ISI, emerging markets outside of China present a significant growth opportunity for Apple. The note highlights the preference for iPhones in developing countries, where the high-end smartphone market has doubled in the last two years. If this trend continues, it could add substantial revenue to Apple’s iPhone total addressable market (TAM).

Additionally, Apple’s ability to increase iPhone average selling prices (ASPs) and drive customers towards higher-priced models like the Pro and Pro Max further contributes to revenue growth.

Furthermore, innovation, particularly in the form of AI-enabled features, could potentially shorten the iPhone replacement cycle, currently at around 41 months. Evercore ISI estimates that for every one month reduction in the replacement cycle, it could add significant revenue and earnings per share.

“We think ‘AI-enabled’ iPhone over time could be a catalyst,” said Evercore. 

Evercore ISI advises investors not to underestimate the iPhone’s growth potential, maintaining an Outperform rating and a target price of $220 on Apple shares (NASDAQ:).

Evercore stated, “Investors should not underestimate the ability of the iPhone to continue to deliver growth over the next five years.”





This article was originally published by a www.investing.com

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